Profitability Analysis-A Study with "Ultra Tech Cement Ltd"

The analysis and use of financial ratios is an increasingly important area of financial research and practice. Parties interested in financial ratios are shareholders, creditors, and a firm's own management. Both current and prospective shareholders are interested in the firm's current and future level of risk and return, which directly affect the share price. A secondary concern of creditors is the firm profitability they want assurance that the business is healthy. The management like shareholders is concerned with all aspects of firm's financial situation, and it attempts to produce financial ratios that will be considered favorable by both the owners and creditors. In addition, the management uses ratios to monitor the firm's performance from period to period. To study the applicability of profitability rations, Ultratech cement has been considered. This paper addresses the profitability rations of the Ultratech cement to give a brief idea to the investors to select for investment in equities.